Reuters said poised to accept Thomson offer

NEW YORK (CNNMoney.com) -- Reuters, the financial news agency whose founder started off selling stock quotes via carrier pigeon in Europe, appears set to recommend a takeover bid from Thomson Corp., a rival in the financial news business, according to a news report Friday.

Without quoting any sources, the Financial Times reported on its Web site late Friday that Reuters "appeared willing to recommend an offer." The report did not give a price. Reuters (Charts), the 156-year-old company based in London, confirmed in a statement earlier Friday that it had received a preliminary offer.

"The board of Reuters confirms it has received a preliminary approach from a third party which may or may not lead to an offer being made for Reuters," Reuters said in its statement.

"There is no certainty an offer will be made or necessary approvals, including those required under Reuters constitution, will be received."

A deal would depend on getting backing from a special Reuters entity created to ensure the company's editorial integrity. The entity, called Reuters Founder Share Co., effectively has veto power over any sale of the company.

Reuters stock jumped 27 percent to close at $74.76 on Nasdaq.

Thomson's acquisition of Reuters would create a group larger than current market leader Bloomberg, the firm founded by New York Mayor Mike Bloomberg, according to the Financial Times.

Earlier, traders had reported market speculation of a bid from Canada's Thomson (Charts) or Rupert Murdoch's News Corp (Charts, Fortune 500).

The Reuters Founder Share Co. is run by 15 trustees, charged with ensuring the "independence, impartiality, integrity and freedom from bias" of the global news organization.

An agreed bid, however, would be possible.

News Corp has bid $5 billion for Dow Jones (Charts), but the controlling Bancroft family gave the bid a chilly reception. In a move that essentially declines the News Corp offer, Dow Jones said it would take no action on the Murdoch's bid.

New York-based Dow Jones owns The Wall Street Journal and is a rival of Reuters, Thomson and closely held Bloomberg in providing real-time financial news.

News of Murdoch's bid for Dow Jones on Tuesday sparked a wave of speculation about further consolidation in the business news and financial information sectors.

Thomson moved last year to expand its financial news content by buying London-based AFX News for around $20 million. The new Thomson-branded service is expected to launch by the end of next month.